Incentive From Lessor

6 Months Ended

Jun. 29, 2014

Leases [Abstract]

Incentive From Lessor

NOTE 8 – INCENTIVE FROM LESSOR

The Company received $590,000 for Century City, $489,770 for Topanga and $403,750 for Glendale from the Company’s landlords as construction contributions pursuant to agreed-upon terms in the lease agreements as of March 30, 2017. The Glendale commitment is a total of $475,000 of which the remaining $71,250 will be received in 2014.

Landlord construction contributions usually take the form of up-front cash.  Depending on the specifics of the leased space and the lease agreement, amounts paid for structural components are recorded during the construction period as leasehold improvements or the landlord construction contributions are recorded as an incentive from lessor.  The incentive from lessor is amortized over the life of the lease which is 10 years and netted against occupancy cost.

Amortization of the incentive from lessor was $19,331 and $20,153 for the thirteen weeks and twenty-six weeks ended June 29, 2014 and $15,475 and $25,540 for three and six months ended June 30, 2013, respectively.